Title 49—Transportation--Volume 1
PART 215—RAILROAD FREIGHT CAR SAFETY STANDARDS
§ 215.1   Scope of part.
This part prescribes minimum Federal safety standards for railroad freight cars.
§ 215.3   Application.
(a) Except as provided in paragraphs (b) and (c) of this section, this part applies to each railroad freight car in service on:
(1) Standard gage track of a railroad; or
(2) Any other standard gage track while the car is being operated by, or is otherwise under the control of, a railroad.
(b) Sections 215.15 and 215.303 of this part do not apply to any car:
(1) Owned by a Canadian or Mexican Railroad; and
(2) Having a Canadian or Mexican reporting mark and car number.
(c) This part does not apply to a railroad freight car that is:
(1) Operated solely on track inside an industrial or other non-railroad installation; or
(2) Used exclusively in dedicated service as defined in § 215.5(d) of this part; or
(3) Maintenance-of-way equipment (including self-propelled maintenance-of-way equipment) if that equipment is not used in revenue service and is stenciled in accordance with § 215.305 of this part.
(4) Operated in a passenger train and that is inspected, tested, maintained, and operated pursuant to the requirements contained in part 238 of this chapter.
§ 215.5   Definitions.
As used in this part:
Break means a fracture resulting in complete separation into parts.
Component means a part or subassembly of a railroad freight car.
Control means the power, whether direct or indirect and whether or not exercised, through the ownership of a majority or a dominant minority of the total outstanding voting interest in an entity; representation on the board of directors of an entity; proxy voting on the board of directors of an entity; a special share in the entity; a contractual arrangement with the entity; a formal or informal arrangement to act in concert with an entity; or any other means, to determine, direct, make decisions, or cause decisions to be made for the entity.
Cost of sensitive technology means the aggregate cost of the sensitive technology located on a railroad freight car.
Country of concern means a country that—
(1) Was identified by the Department of Commerce as a nonmarket economy country (as defined in section 771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18))) as of November 15, 2021;
(2) Was identified by the United States Trade Representative in the most recent report required by section 182 of the Trade Act of 1974 (19 U.S.C. 2242) as a foreign country included on the priority watch list (as defined in subsection (g)(3) of such section); and
(3) Is subject to monitoring by the Trade Representative under section 306 of the Trade Act of 1974 (19 U.S.C. 2416).
Dedicated service means the exclusive assignment of cars to the transportation of freight between specified points under the following conditions:
(1) The cars are operated—
(i) Primarily on track that is inside an industrial or other non-railroad installation; and
(ii) Only occasionally over track of a railroad;
(2) The cars are not operated—
(i) At speeds of more than 15 miles per hour; and
(ii) Over track of a railroad—
(A) For more than 30 miles in one direction; or
(B) On a round trip of more than 60 miles;
(3) The cars are not freely interchanged among railroads;
(4) The words “Dedicated Service” are stenciled, or otherwise displayed, in clearly legible letters on each side of the car body;
(5) The cars have been examined and found safe to operate in dedicated service; and
(6) The railroad must—
(i) Notify FRA in writing that the cars are to be operated in dedicated service;
(ii) Identify in that notice—
(A) The railroads affected;
(B) The number and type of cars involved;
(C) The commodities being carried; and
(D) The territorial and speed limits within which the cars will be operated; and
(iii) File the notice required by this paragraph (6)(iii) of the definition not less than 30 days before the cars operate in dedicated service.
In service , when used in connection with a railroad freight car, means each railroad freight car subject to this part unless the car:
(1) Has a “bad order” or “home shop for repairs” tag or card containing the prescribed information attached to each side of the car and is being handled in accordance with § 215.9;
(2) Is in a repair shop or on a repair track;
(3) Is on a storage track and is empty; or
(4) Has been delivered in interchange but has not been accepted by the receiving carrier.
Net cost has the meaning given such term in chapter 4 of the USMCA or any subsequent free trade agreement between the United States, Mexico, and Canada.
Qualified facility means a facility that is not owned or under the control of a state-owned enterprise.
Qualified manufacturer means a railroad freight car manufacturer that is not owned or under the control of a state-owned enterprise.
Railroad means all forms of non-highway ground transportation that run on rails or electromagnetic guideways, including:
(1) Commuter or other short-haul rail passenger service in a metropolitan or suburban area; and
(2) High speed ground transportation systems that connect metropolitan areas, without regard to whether they use new technologies not associated with traditional railroads. Such term does not include rapid transit operations within an urban area that are not connected to the general railroad system of transportation.
Railroad freight car means any car designed to carry freight or railroad personnel by rail, including—
(1) A box car;
(2) A refrigerator car;
(3) A ventilator car;
(4) An intermodal well car;
(5) A gondola car;
(6) A hopper car;
(7) An auto rack car;
(8) A flat car;
(9) A special car;
(10) A caboose car;
(11) A tank car; and
(12) A yard car.
Sensitive technology means any device embedded with electronics, software, sensors, or other connectivity, that enables the device to connect to, collect data from, or exchange data with another device, including—
(1) Onboard telematics;
(2) Remote monitoring software;
(3) Firmware;
(4) Analytics;
(5) Global positioning system satellite and cellular location tracking systems;
(6) Event status sensors;
(7) Predictive component condition and performance monitoring sensors; and
(8) Similar sensitive technologies embedded into freight railcar components and sub-assemblies.
State inspector means an inspector who is participating in investigative and surveillance activities under section 206 of the Federal Railroad Safety Act of 1970 (45 U.S.C. 435).
State-owned enterprise means—
(1) An entity that is owned by, or under the control of, a national, provincial, or local government of a country of concern, or an agency of such government; or
(2) An individual acting under the direction or influence of a government or agency described in paragraph (1) of this definition.
Substantially transformed means a component of a railroad freight car that undergoes an applicable change in tariff classification as a result of the manufacturing process, as described in chapter 4 and related annexes of the USMCA or any subsequent free trade agreement between the United States, Mexico, and Canada.
USMCA. The acronym 'USMCA' has the meaning given the term in section 3 of the United States-Mexico-Canada Agreement Implementation Act (19 U.S.C. 4502).
§ 215.7   Prohibited acts.
Any person (an entity of any type covered under 1 U.S.C. 1, including but not limited to the following: a railroad; a manager, supervisor, official, or other employee or agent of a railroad; any owner, manufacturer, lessor, or lessee of railroad equipment, track, or facilities; any independent contractor providing goods or services to a railroad; and any employee of such owner, manufacturer, lessor, lessee, or independent contractor) who violates any requirement of this part or causes the violation of any such requirement is subject to a civil penalty of at least $1,114 and not more than $36,439 per violation, except that: Penalties may be assessed against individuals only for willful violations, and, where a grossly negligent violation or a pattern of repeated violations has created an imminent hazard of death or injury to persons, or has caused death or injury, a penalty not to exceed $145,754 per violation may be assessed. Each day a violation continues shall constitute a separate offense. See FRA's website at www.fra.dot.gov for a statement of agency civil penalty policy.
§ 215.9   Movement of defective cars for repair.
(a) A railroad freight car which has any component described as defective in this part may be moved to another location for repair only after the railroad has complied with the following:
(1) A person designated under § 215.11 shall determine:
(i) That it is safe to move the car; and
(ii) The maximum speed and other restrictions necessary for safely conducting the movement;
(2)(i) The person in charge of the train in which the car is to be moved shall be notified in writing and inform all other crew members of the presence of the defective car and the maximum speed and other restrictions determined under paragraph (a)(1)(ii) of this section.
(ii) A copy of the tag or card described in paragraph (a)(3) of this section may be used to provide the notification required by paragraph (a)(2)(i) of this section.
(3) A tag or card bearing the words “bad order” or “home shop for repairs” and containing the following information, shall be securely attached to each side of the car—
(i) The reporting mark and car number;
(ii) The name of the inspecting railroad;
(iii) The inspection location and date;
(iv) The nature of each defect;
(v) Movement restrictions;
(vi) The destination for shopping or repair; and
(vii) The signature of a person designated under § 215.11.
(b)(1) The tag or card required by paragraph (a)(3) of this section may only be removed from the car by a person designated under § 215.11 of this part.
(2) A record or copy of each tag or card attached to or removed from a car shall be retained for 90 days and, upon request, shall be made available within 15 calendar days for inspection by FRA or State inspectors.
(3) Each tag or card removed from a car shall contain a notification stating the date, location, reason for its removal, and the signature of the person who removed it from the car. These recordkeeping requirements have been approved by the Office of Management and Budget in accordance with the Federal Reports Act of 1942.
(c) Movement of a freight car under paragraph (a) of this section may be made only for the purpose of effecting repairs. If the car is empty, it may not be placed for loading. If the car is loaded, it may not be placed for unloading unless unloading is consistent with determinations made and restrictions imposed under paragraph (a)(1) of this section and—
(1) The car is consigned for a destination on the line of haul between the point where the car was found defective and the point where repairs are made; or
(2) Unloading is necessary for the safe repair of the car.
(d) Nothing in this section authorizes the movement of a freight car subject to a Special Notice for Repairs unless the movement is made in accordance with the restrictions contained in the Special Notice.
§ 215.11   Designated inspectors.
(a) Each railroad that operates railroad freight cars to which this part applies shall designate persons qualified to inspect railroad freight cars for compliance with this part and to make the determinations required by § 215.9 of this part.
(b) Each person designated under this section shall have demonstrated to the railroad a knowledge and ability to inspect railroad freight cars for compliance with the requirements of this part and to make the determinations required by § 215.9 of this part.
(c) With respect to designations under this section, each railroad shall maintain written records of:
(1) Each designation in effect; and
(2) The basis for each designation.
§ 215.13   Pre-departure inspection.
(a) At each location where a freight car is placed in a train, the freight car shall be inspected before the train departs. This inspection may be made before or after the car is placed in the train.
(b) At a location where an inspector designated under § 215.11 is on duty for the purpose of inspecting freight cars, the inspection required by paragraph (a) of this section shall be made by that inspector to determine whether the car is in compliance with this part.
(c) At a location where a person designated under § 215.11 is not on duty for the purpose of inspecting freight cars, the inspection required by paragraph (a) shall, as a minimum, be made for those conditions set forth in appendix D to this part.
(d) Performance of the inspection prescribed by this section does not relieve a railroad of its liability under § 215.7 for failure to comply with any other provision of this part.
§ 215.15   Periodic inspection.
(a) After June 30, 1980, a railroad may not place or continue in service a freight car that has not received an initial periodic inspection in accordance with 49 CFR 215.25, as in effect on October 6, 1976 (41 FR 44044), unless—
(1) The car is a high utilization car built or reconditioned after December 31, 1977; or
(2) The car is a non-high utilization car built or reconditioned after December 31, 1971.
(b) A freight car that has received an initial periodic inspection under paragraph (a) of this section shall be stenciled to so indicate in accordance with 49 CFR 215.11 and appendix C of this part, as in effect on October 6, 1976 (41 FR 44044). This stenciling need not be retained on the car after June 30, 1981.
(c) As used in this section, “high utilization car” means a car—
(1) Specifically equipped to carry trucks, automobiles, containers, trailers, or removable trailer bodies for the transportation of freight; or
(2) Assigned to a train that operates in a continuous round trip cycle between the same two points.
§ 215.101   Scope.
This subpart contains safety requirements prohibiting a railroad from placing or continuing in service a freight car that has certain defective components.
§ 215.103   Defective wheel.
A railroad may not place or continue in service a car, if—
(a) A wheel flange on the car is worn to a thickness of 7/8 of an inch, or less, at a point 3/8 of an inch above the tread of the wheel;
(b) The height of a wheel flange on the car, from the tread to the top of the flange, is 1 1/2 inches, or more;
(c) The thickness of a rim of a wheel on the car is 11/16 of an inch, or less;
(d) A wheel rim, flange, plate, or hub area on the car has a crack or break;
(e) A wheel on the car has a chip or gouge in the flange that is 1 1/2 inches in length and 1/2 inch in width, or more;
(f) A wheel on the car has—
(1) A slid flat or shelled spot that is more than 2 1/2 inches in length; or
(2) Two adjoining flat or shelled spots each of which is more than two inches in length;
(g) A wheel on the car shows evidence of being loose such as oil seepage on the back hub or back plate;
(h) A wheel on the car shows signs of having been overheated as evidenced by a reddish brown discoloration, to a substantially equal extent on both the front and the back face of the rim, that extends on either face more than four inches into the plate area measured from the inner edge of the front or back face of the rim; or,
(i) A wheel on the car has been welded unless the car is being moved for repair in accordance with § 215.9 of this part.
§ 215.105   Defective axle.
A railroad may not place or continue in service a car, if—
(a) An axle on the car has a crack or is broken;
(b) An axle on the car has a gouge in the surface that is—
(1) Between the wheel seats; and
(2) More than one-eighth inch in depth;
(c) An axle on the car, used in conjunction with a plain bearing, has an end collar that is broken or cracked;
(d) A journal on the car shows evidence of overheating, as evidenced by a pronounced blue black discoloration; or
(e) The surface of the plain bearing journal on the axle, or the fillet on the axle, has—
(1) A ridge;
(2) A depression;
(3) A circumferential score;
(4) Corrugation;
(5) A scratch;
(6) A continuous streak;
(7) Pitting;
(8) Rust; or
(9) Etching.
§ 215.107   Defective plain bearing box: General.
A railroad may not place or continue in service a car, if the car has—
(a) A plain bearing box that does not contain visible free oil;
(b) A plain bearing box lid that is missing, broken, or open except to receive servicing; or
(c) A plain bearing box containing foreign matter, such as dirt, sand, or coal dust, that can reasonably be expected to—
(1) Damage the bearing; or
(2) Have a detrimental effect on the lubrication of the journal and the bearings.
§ 215.109   Defective plain bearing box: Journal lubrication system.
A railroad may not place or continue in service a car, if the car has a plain bearing box with a lubricating pad that—
(a) Has a tear extending half the length or width of the pad, or more;
(b) Shows evidence of having been scorched, burned, or glazed;
(c) Contains decaying or deteriorated fabric that impairs proper lubrication of the pad;
(d) Has—
(1) An exposed center core (except by design); or
(2) Metal parts contacting the journal; or
(e) Is—
(1) Missing; or
(2) Not in contact with the journal.
§ 215.111   Defective plain bearing.
A railroad may not place or continue in service a car, if the car has a plain bearing—
(a) That is missing, cracked, or broken;
(b) On which the bearing liner—
(1) Is loose; or
(2) Has a broken out piece; or
(c) That shows signs of having been overheated, as evidenced by—
(1) Melted babbitt;
(2) Smoke from hot oil; or
(3) Journal surface damage.
§ 215.113   Defective plain bearing wedge.
A railroad may not place or continue in service a car, if a plain bearing wedge on that car is—
(a) Missing;
(b) Cracked;
(c) Broken; or
(d) Not located in its design position.
§ 215.115   Defective roller bearing.
(a) A railroad may not place or continue in service a car, if the car has—
(1) A roller bearing that shows signs of having been overheated as evidenced by—
(i) Discoloration; or
(ii) Other telltale signs of overheating such as damage to the seal or distortion of any bearing component;
(2) A roller bearing with a—
(i) Loose or missing cap screw; or
(ii) Broken, missing, or improperly applied cap screw lock; or
(3) A roller bearing with a seal that is loose or damaged, or permits leakage of lubricant in clearly formed droplets.
(b)(1) A railroad may not continue in service a car that has a roller bearing whose truck was involved in a derailment unless the bearing has been inspected and tested by:
(i) Visual examination to determine whether it shows any sign of damage; and
(ii) Spinning freely its wheel set or manually rotating the bearing to determine whether the bearing makes any unusual noise.
(2) The roller bearing shall be disassembled from the axle and inspected internally if—
(i) It shows any external sign of damage;
(ii) It makes any unusual noise when its wheel set is spun freely or the bearing is manually rotated;
(iii) Its truck was involved in a derailment at a speed of more than 10 miles per hour; or
(iv) Its truck was dragged on the ground for more than 200 feet.
(3) Each defective roller bearing shall be repaired or replaced before the car is placed back in service.
§ 215.117   Defective roller bearing adapter.
A railroad may not place or continue in service a car, if the car has a roller bearing adapter that is—
(a) Cracked or broken;
(b) Not in its design position; or
(c) Worn on the crown of the adapter to the extent that the frame bears on the relief portion of the adapter, as shown in the figure below (see figure 1).
§ 215.119   Defective freight car truck.
A railroad may not place or continue in service a car, if the car has—
(a) A side frame or bolster that—
(1) Is broken; or
(2) Has a crack of 1/4 of an inch or more in the transverse direction on a tension member;
(b) A truck equipped with a snubbing device that is ineffective, as evidenced by—
(1) A snubbing friction element that is worn beyond a wear indicator;
(2) A snubber wear plate that is loose, missing (except by design), or worn through;
(3) A broken or missing snubber activating spring; or
(4) Snubber unit that is broken, or in the case of hydraulic units, is broken or leaking clearly formed droplets of oil or other fluid.
(c) A side bearing in any of the following conditions:
(1) Part of the side bearing assembly is missing or broken;
(2) The bearings at one end of the car, on both sides, are in contact with the body bolster (except by design);
(3) The bearings at one end of the car have a total clearance from the body bolster of more than 3/4 of an inch; or
(4) At diagonally opposite sides of the car, the bearings have a total clearance from the body bolsters of more than 3/4 of an inch;
(d) Truck springs—
(1) That do not maintain travel or load;
(2) That are compressed solid; or
(3) More than one outer spring of which is broken, or missing, in any spring cluster;
(e) Interference between the truck bolster and the center plate that prevents proper truck rotations; or
(f) Brake beam shelf support worn so excessively that it does not support the brake beam.
§ 215.121   Defective car body.
A railroad may not place or continue in service a car, if:
(a) Any portion of the car body, truck, or their appurtenances (except wheels) has less than a 2 1/2 inch clearance from the top of rail;
(b) The car center sill is:
(1) Broken;
(2) Cracked more than 6 inches; or
(3) Permanently bent or buckled more than 2 1/2 inches in any six foot length;
(c) The car has a coupler carrier that is:
(1) Broken;
(2) Missing;
(3) Non-resilient and the coupler has a type F head.
(d) After December 1, 1983, the car is a box car and its side doors are not equipped with operative hangers, or the equivalent, to prevent the doors from becoming disengaged.
(e) The car has a center plate:
(1) That is not properly secured;
(2) Any portion of which is missing; or
(3) That is broken; or
(4) That has two or more cracks through its cross section (thickness) at the edge of the plate that extend to the portion of the plate that is obstructed from view while the truck is in place; or
(f) The car has a broken sidesill, crossbearer, or body bolster.
§ 215.123   Defective couplers.
A railroad may not place or continue in service a car, if—
(a) The car is equipped with a coupler shank that is bent out of alignment to the extent that the coupler will not couple automatically with the adjacent car;
(b) The car has a coupler that has a crack in the highly stressed junction area of the shank and head as shown in the figure below (see figure 2).
(c) The car has a coupler knuckle that is broken or cracked on the inside pulling face of the knuckle.
(d) The car has a knuckle pin or knuckle thrower that is:
(1) Missing; or
(2) Inoperative; or
(e) The car has a coupler retainer pin lock that is—
(1) Missing; or
(2) Broken; or
(f) The car has a coupler with any of the following conditions:
(1) The locklift is inoperative;
(2) The coupler assembly does not have anticreep protection to prevent unintentional unlocking of the coupler lock; or
(3) The coupler lock is—
(i) Missing;
(ii) Inoperative;
(iii) Bent;
(iv) Cracked; or
(v) Broken.
§ 215.125   Defective uncoupling device.
A railroad may not place or continue in service a car, if the car has an uncoupling device without sufficient vertical and lateral clearance to prevent—
(a) Fouling on curves; or
(b) Unintentional uncouplings.
§ 215.127   Defective draft arrangement.
A railroad may not place or continue in service a car, if—
(a) The car has a draft gear that is inoperative;
(b) The car has a broken yoke;
(c) An end of car cushioning unit is—
(1) Leaking clearly formed droplets; or
(2) Inoperative;
(d) A vertical coupler pin retainer plate—
(1) Is missing (except by design); or
(2) Has a missing fastener;
(e) The car has a draft key, or draft key retainer, that is—
(1) Inoperative; or
(2) Missing; or
(f) The car has a missing or broken follower plate.
§ 215.129   Defective cushioning device.
A railroad may not place or continue in service a car if it has a cushioning device that is—
(a) Broken;
(b) Inoperative; or
(c) Missing a part—
§ 215.201   Scope.
This subpart contains requirements restricting the use of certain railroad freight cars.
§ 215.203   Restricted cars.
(a) This section restricts the operation of any railroad freight car that is—
(1) More than 50 years old, measured from the date of original construction;
(2) Equipped with any design or type component listed in appendix A to this part; or
(3) Equipped with a Duryea underframe constructed before April 1, 1950, except for a caboose which is operated as the last car in a train.
(b) A railroad may not place or continue in service a railroad freight car described in paragraph (a) of this section, except under conditions approved by the Federal Railroad Administrator.
(c) A railroad may petition the Administrator to continue in service a car described in paragraph (a) of this section. Each petition shall be
(1) Be submitted not less than 90 days before the car is to be operated;
(2) Be submitted; and
(3) State or describe the following:
(i) The name and principal business address of the petitioning railroad.
(ii) The name and address of the entity that controls the operation and maintenance of the car involved.
(iii) The number, type, capacity, reporting marks, and car numbers of the cars, their condition, status, and age measured from the date of original construction.
(iv) The design, type component, or other item that causes the car to be restricted.
(v) The maximum load the cars would carry.
(vi) The maximum speed at which the cars would be operated.
(vii) That each car has been examined and found to be safe to operate under the conditions set forth in the petition.
(viii) The territorial limits within which the cars are to be operated and the name of each railroad that will receive the cars in interchange.
§ 215.301   General.
The railroad or private car owner reporting mark, the car number, and built date shall be stenciled, or otherwise displayed, in clearly legible letters and numbers not less than seven inches high, except those of the built date which shall not be less than one inch high:
(a) On each side of each railroad freight car body; and
(b) In the case of a tank car, in any location that is visible to a person walking at track level beside the car.
§ 215.303   Stenciling of restricted cars.
(a) Each restricted railroad freight car that is described in § 215.205(a) of this part shall be stenciled, or marked—
(1) In clearly legible letters; and
(2) In accordance with paragraphs (b) and (c) of this section.
(b) The letter “R” shall be—
(1) Placed immediately below or to the right of the car number;
(2) The same color as the reporting mark; and
(3) The same size as the reporting mark.
(c) The following terms, to the extent needed to completely indicate the basis for the restricted operation of the car, shall be placed on the car following the symbol “R” in letters not less than one inch high:
(1) Age.
(2) Coupler.
(3) Draft.
(4) Bearings.
(5) Truck.
(6) Underframe.
(7) Wheels.
(8) Yoke.
§ 215.305   Stenciling of maintenance-of-way equipment.
(a) Maintenance-of-way equipment (including self-propelled maintenance-of-way equipment) described in § 215.3(c)(3) shall be stenciled, or marked—
(1) In clearly legible letters; and
(2) In accordance with paragraph (b) of this section.
(b) The letters “MW” must be—
(1) At least 2 inches high; and
(2) Placed on each side of the car.
§ 215.401   Requirements for railroad freight cars placed into service in the United States.
(a) Limitation on railroad freight cars. A railroad freight car wholly manufactured on or after December 19, 2025 may only operate on the United States general railroad system of transportation if:
(1) The railroad freight car is manufactured, assembled, and substantially transformed, as applicable, by a qualified manufacturer in a qualified facility;
(2) None of the sensitive technology located on the railroad freight car, including components necessary to the functionality of the sensitive technology, originates from a country of concern or is sourced from a state-owned enterprise; and
(3) None of the content of the railroad freight car, excluding sensitive technology, originates from a country of concern or is sourced from a state-owned enterprise that has been determined by a recognized court or administrative agency of competent jurisdiction and legal authority to have violated or infringed valid United States intellectual property rights of another including such a finding by a Federal district court under title 35 or the U.S. International Trade Commission under section 337 of the Tariff Act of 1930 (19 U.S.C. 1337).
(b) Limitation on railroad freight car content —(1) Percentage limitation —(i) Initial limitation. Not later than December 19, 2025, a railroad freight car described in paragraph (a) of this section may operate on the United States general railroad system of transportation only if not more than 20 percent of the content of the railroad freight car, calculated by the net cost of all components of the car and excluding the cost of sensitive technology, originates from a country of concern or is sourced from a state-owned enterprise.
(ii) Subsequent limitation. Effective beginning on December 19, 2028, a railroad freight car described in paragraph (a) of this section may operate on the United States general railroad system of transportation only if not more than 15 percent of the content of the railroad freight car, calculated by the net cost of all components of the car and excluding the cost of sensitive technology, originates from a country of concern or is sourced from a state-owned enterprise.
(2) Conflict. The percentages specified in the clauses in paragraphs (b)(1)(i) and (ii) of this section, as applicable, shall apply notwithstanding any apparent conflict with provisions of chapter 4 of the USMCA.
§ 215.403   Certification of compliance.
(a) Certification required. To be eligible to provide a railroad freight car for operation on the United States general railroad system of transportation, the manufacturer of such car shall certify, at least annually, to the Federal Railroad Administrator that any railroad freight cars to be so provided comply with 49 U.S.C. 20171.
(1) Certification procedure. Prior to providing any cars for operation on the United States general railroad system of transportation, each freight car manufacturer shall certify to FRA that the cars comply with 49 U.S.C. 20171. Such certification shall be submitted via electronic mail by an authorized representative of the manufacturer to FRARRSMPE@dot.gov. A manufacturer may submit this certification to FRA annually provided it covers all cars to be provided in the relevant year, or a manufacturer may submit separate certifications throughout the year.
(i) The certification shall include the statement “I certify that all freight cars that will be provided for operation on the United States general railroad system of transportation will comply with 49 U.S.C. 20171, and the implementing regulations at 49 CFR part 215” and contain:
(A) The manufacturer's name and address;
(B) The name, signature, and contact information for the person designated to certify compliance with this subpart; and
(C) A car identification number for each car being certified.
(ii) Manufacturers shall maintain records showing the information, including the calculations, made to support certification under this section and such records shall be made available to FRA upon request.
(2) Valid certification required. At the time a railroad freight car begins operation on the United States general railroad system of transportation, the manufacturer of such railroad freight car shall have valid certification described in paragraph (a) of this section for the year in which such car begins operation.
(b) [Reserved]
§ 215.405   Prohibition on registering noncompliant railroad freight cars.
(a) Cars prohibited. A railroad freight car manufacturer may not register, or cause to be registered, a railroad freight car that does not comply with the requirements under this subpart in the Umler system.
(b) [Reserved]
§ 215.407   Civil penalties.
(a) In general. A railroad freight car manufacturer that has manufactured a railroad freight car for operation on the United States freight railroad interchange system that the Secretary of Transportation determines, after written notice and an opportunity for a hearing, has violated this subpart is liable to the United States Government for a civil penalty of at least $100,000, but not more than $250,000, for each such violation for each railroad freight car.
(b) Prohibition for violations. The Secretary of Transportation may prohibit a railroad freight car manufacturer with respect to which the Secretary has assessed more than three violations under this section from providing additional railroad freight cars for operation on the United States freight railroad interchange system until the Secretary determines:
(1) Such manufacturer is in compliance with this subpart; and
(2) All civil penalties assessed to such manufacturer pursuant to this section have been paid in full.
§ 215.409   Demand letter.
(a) FRA, through the Office of the Chief Counsel, begins a civil penalty proceeding under § 215.407(a) by serving a demand letter on a railroad freight car manufacturer, charging the railroad freight car manufacturer with having violated one or more provisions of this subpart.
(b) A demand letter issued under this section includes:
(1) A statement of the provision(s) which the respondent is believed to have violated;
(2) A statement of the factual allegations upon which the proposed civil monetary penalty is being sought;
(3) Notice of the maximum amount of civil monetary penalty for which the respondent may be liable;
(4) Notice of the amount of the civil monetary penalty proposed;
(5) A description of the manner in which the respondent should make payment of any money to the United States;
(6) A statement of the respondent's right to present written explanations, information, or any materials in answer to the charges or in mitigation of the penalty; and
(7) A statement of the respondent's right to request a hearing and the procedures for requesting a hearing.
(c) FRA may amend the demand letter at any time prior to completion of a fully executed settlement agreement or the entry of an order to pay a civil monetary penalty. If the amendment contains any new material allegation of fact, the respondent is given an opportunity to respond. In an amended demand letter, FRA may change the civil monetary penalty amount initially proposed, up to the maximum penalty amount for each violation.
§ 215.411   Reply.
(a) Within sixty (60) days of the service of a demand letter issued under § 215.409, the respondent may—
(1) Pay as provided in § 209.413(a) and thereby close the case;
(2) Make an informal response as provided in § 215.415; or
(3) Request a hearing as provided in § 215.417.
(b) The Office of the Chief Counsel may extend the sixty (60) day period for good cause shown.
(c) Failure of the respondent to reply by taking one of the three actions described in paragraph (a) of this section, within the period provided, constitutes a waiver of the right to appear and contest the allegations, and authorizes the Office of the Chief Counsel, without further notice to the respondent, to find the facts to be as alleged in the demand letter and to assess an appropriate civil penalty.
§ 215.413   Payment of penalty; compromise.
(a) Payment of a civil monetary penalty may be made by credit card, certified check, money order, or wire transfer. Payment by credit card must be made via the internet at https://www.pay.gov/paygov/. Instructions for online payment are found on the website. Payments made by certified check or money order should be made payable to the Federal Railroad Administration and sent to DOT/FRA, M.M.A.C., AMK-324, HQ-RM 181, P.O. Box 25082, Oklahoma City, OK 73125. Overnight express payments may be sent to DOT/FRA, M.M.A.C., AMK-324, HQ-RM 181, 6500 South MacArthur Blvd., Oklahoma City, OK 73169.
(b) At any time before an order requiring payment of a civil monetary penalty is referred to the Attorney General for collection, the respondent may offer to compromise for a specific amount by contacting the Office of the Chief Counsel.
§ 215.415   Informal response and assessment.
(a) If a respondent elects to make an informal response to a demand letter, respondent must submit to the Office of the Chief Counsel such written explanations, information, or other materials as respondent may desire in answer to the charges or in mitigation of the proposed penalty.
(b) The respondent may include in the informal written response a request for a conference. Upon receipt of such a request, the Office of the Chief Counsel arranges for a conference as soon as practicable.
(c) Written explanations, information, or materials submitted by the respondent, and relevant information presented during any conference held under this section, are considered by the Office of the Chief Counsel in reviewing the demand letter and determining the fact(s) of the violation and the amount of any civil penalty to be paid.
(d) After consideration of an informal response, including any relevant information presented at a conference, the Office of the Chief Counsel may dismiss the demand letter in whole or in part. If the Office of the Chief Counsel does not dismiss the action in whole, the Office of the Chief Counsel may enter into a settlement agreement or enter an order assessing a civil monetary penalty.
§ 215.417   Request for hearing.
(a) If a respondent elects to request a hearing, the respondent must submit a written request to the Office of the Chief Counsel referring to the case number which appeared on the demand letter. The request must—
(1) State the name and email address of the respondent and of the person signing the request, if different from the respondent;
(2) State with respect to each allegation whether it is admitted or denied; and
(3) State with particularity the issues to be raised by the respondent at the hearing.
(b) After a request for hearing that complies with the requirements of paragraph (a) of this section, the Office of the Chief Counsel schedules a hearing for the earliest practicable date.
(c) The Office of the Chief Counsel, or the hearing officer designated under § 215.419, may grant extensions of the time of the commencement of the hearing for good cause shown.
§ 215.419   Hearing.
(a) When a hearing is requested and scheduled under § 215.417, a presiding officer designated by the Office of the Chief Counsel convenes and presides over the hearing. If requested by the respondent, and if practicable, the hearing is held in the general vicinity of the place where the alleged violation occurred, at a place convenient to the respondent, or virtually. Testimony by witnesses shall be given under oath and the hearing shall be recorded verbatim.
(b) The presiding official may:
(1) Administer oaths and affirmations;
(2) Issue subpoenas as provided by § 209.7;
(3) Adopt procedures for the submission of evidence in written form;
(4) Take or cause depositions to be taken;
(5) Rule on offers of proof and receive relevant evidence;
(6) Examine witnesses at the hearing;
(7) Convene, recess, reconvene, and adjourn and otherwise regulate the course of the hearing;
(8) Hold conferences for settlement, simplification of the issues or any other proper purpose; and
(9) Take any other action authorized by, or consistent with, the provisions of this subpart pertaining to civil monetary penalties and permitted by law that may expedite the hearing or aid in the disposition of an issue raised, therein.
(c) The Office of the Chief Counsel has the burden of providing the facts alleged in the demand letter and may offer such relevant information as may be necessary fully to inform the presiding officer as to the matter concerned.
(d) The respondent may appear and be heard on the respondent's own behalf or through counsel of the respondent's choice. The respondent or respondent's counsel may offer relevant information, including testimony, which they believe should be considered in defense of the allegations, or that may bear on the proposed civil monetary penalty, and conduct such cross-examination as may be required for a full disclosure of the material facts.
(e) At the conclusion of the hearing, or as soon thereafter as the hearing officer shall provide, the parties may file proposed findings and conclusions, together with supporting reasons.
§ 215.421   Presiding officer's decision.
(a) After consideration of the evidence of record, the presiding officer may dismiss the demand letter in whole or in part. If the presiding officer does not dismiss the civil penalty enforcement action in whole, the presiding officer will issue and serve on the respondent an order assessing a civil penalty. The presiding officer's decision will include a statement of findings and conclusions as well as the reasons therefor on all material issues of fact, law, and discretion.
(b) If, within twenty (20) days after service of an order assessing a civil penalty fine issued by the presiding officer under paragraph (a) of this section, the respondent does not pay the civil penalty fine, the case may be referred to the Attorney General with a request that an action to collect the penalty be brought in the appropriate United States District Court. In the civil action, the amount and appropriateness of the civil penalty shall not be subject to review.